net present value

J & J Enterprises is considering a cash acquisition of Patterson Steel Company for $6.500.000 Patterson will provide the following pattern of cash inflows and synergistic benefits for the next 20 years. There is no fax loss carryforward. Use Appendix D as an approximate answer but calculate your final answer using the formula and financial calculator methods Cash inflow (aftertax) Synergistic benefits (aftertax) 1-5 $690.000 65.000 Years 6-15 $850,000 85,600 16-20 3965,000 95,000 The cost of capital for the acquiring firm is 11 percent 2. Compute the net present value. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Net present value $ 5,889 310.45 c B DA V Appendix D Presentace of an anity of St PV PVA Percent Period LE NE vo 2960 10 0.000 0900 1.942 1060 1 2 3 033 004) 1833 2673 0926 1783 2577 1716 0651 19 173 ZA 2402 0.935 130 2624 3387 4100 2767 3.808 3465 4 5 COLE 0917 1.79 2531 3.240 3.990 4.455 5003 LEDE 1.885 2.775 3.630 4452 5.242 6.00 6.733 4 E 1993 9 26 3.170 3.291 55 416 0952 1.359 2.723 3545 4320 5076 5730 5.463 7.100 7722 8.306 8.865 4212 4917 5583 6210 1605 4111 6564 2 0971 1913 2929 3.712 4580 5.417 6.230 7.020 7.786 8.530 9.253 9954 10.635 11.296 5200 3 0.990 1.970 2941 3.902 4.853 5795 6.726 7652 3566 9.470 10360 11255 12134 13.004 13.865 14210 15562 SES 5501 6472 7.335 L162 293 9,787 1057 SEE CO 5 10 SES 369 423 4713 5105 553 S 6207 62 6710 7.360 5971 5515 7024 7490 7943 350 6247 6710 7.139 2535 7904 5650 5930 LE 8.511 8.760 9385 9588 10.563 8384 1519 12 5759 6145 6.495 6514 7:10 7357 7506 7524 02 EL BYCIE 666 5.630 681 122106 SOL RE 15 16 12 18 19 2.100 7379 7.540 PM 976 10.00 205 9.712 10.106 10.477 10.820 11.158 11470 12.763 7.120 7300 3301 SESI 7.161 7:47 7.75 3051 13 544 3 90 12 903 10.274 10.753 1092 99 10.30 TO 11274 11690 12085 12.462 14.000 15372 13578 16292 1492 15678 16351 19523 BEL WE VEEOS 1650 . 259 8851 9.122 932 9604 951 10675 1125 11 25 12233 IS 11.662 12.166 12559 19.134 13.590 15622 17.292 19.793 21482 B51 12561 11166 12754 14324 10872 17413 19 600 23.115 257 7050 7:49 24 OC 17226 18066 22023 25.08 32.335 11654 25 902 88.98 6076 966 CE OC POE 13332 13001 15.05 1578 27355 31424 40 50 OCESE 16256 Corsicht 2019 Merw Hill det. All right reserved. No reproduction in with the prin Gel